Stable Value Funds: When Cash Isn’t Enough

¹ As of 06/30/26. Source: Stable Value Investment Association.

Investors cannot invest directly in an index. Index performance does not reflect the deduction of any fees, expenses, or taxes. Index comparisons have limitations, as volatility and other characteristics may differ from a particular investment. 

Stable value: Represented as a composite of the historical returns derived from data collected by the Stable Value Investment Association for its four stable value market segments (individually managed accounts, pooled funds, insurance company general accounts, and insurance company separate accounts). Historical return data are presented as both a range (with the top and bottom deciles removed) and an average. Data from 1989 to 2008 were collected from stable value managers to form a composite for use in research conducted by David Babbel and Miguel Herce, and data from 2008 to present are sourced from the SVIA’s Quarterly Characteristics Survey, with the period from 2008 to 2015 derived from reported crediting rate data. Returns are gross of stable value management fees but net of fees necessary to deliver the product, such as stable value wrap, third-party fixed income management, trust, custody, and fund administrative fees. This composite is composed of varying types of stable value products and, as such, should not be used as a comparison to a specific product. Money markets: iMoneyNet MFR Money Funds Index, which simulates the returns of money market funds (mutual funds that invest in low-risk, short-term debt securities). Returns illustrated are gross of fees. Intermediate bonds: Bloomberg Intermediate Government/Credit Bond Index, which measures the non-securitized component of the Bloomberg U.S. Aggregate Index with less than 10 years to maturity. The Index includes investment grade, U.S. dollar-denominated, fixed-rate treasuries, government-related, and corporate securities. Returns illustrated are gross of fees. Stocks: S&P 500 Index, which measures the performance of the 500 largest companies in the U.S., with dividends reinvested. Returns illustrated are gross of fees. Correlation is a statistical measure of how two data series move in relation to each other, with 1 indicating perfect synchronization and 0 indicating the absence of concurrence. 

Past performance does not guarantee future results. This market insight has been prepared by Voya Investment Management for informational purposes. Nothing contained herein should be construed as (i) an offer to sell or solicitation of an offer to buy any security or (ii) a recommendation as to the advisability of investing in, purchasing, or selling any security. Any opinions expressed herein reflect our judgment and are subject to change. Certain statements contained herein may represent future expectations or other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those expressed or implied in such statements. Actual results, performance, or events may differ materially from those in such statements due to, without limitation, (1) general economic conditions, (2) performance of financial markets, (3) interest rate levels, (4) increasing levels of loan defaults, (5) changes in laws and regulations, and (6) changes in the policies of governments and/or regulatory authorities. The opinions, views, and information expressed in this commentary regarding holdings are subject to change without notice. The information provided regarding holdings is not a recommendation to buy or sell any security. Fund holdings are fluid and are subject to daily change based on market conditions and other factors.